Tw Telecom Responds to Corvex’s Meister

TW Telecomsaid Thursday the telecommunications provider is well-positioned, thanks to its investments in next-generation services and infrastructure, among other initiatives.

The comments come a day after activist investor Keith Meister of Corvex Management LP said he was poised to report a 6% stake in the company and called it an attractive takeover candidate. Meister disclosed his 5.77% ownership stake early Thursday morning with the U.S. Securities and Exchange Commission.

In that filing, Corvex said it believes the stock is undervalued and an attractive investment and it has had multiple conversations with TW Telecom’s management to discuss its business and strategies.

For its part, TW Telecom said it has demonstrated a “long history of open dialog” with investors during its 14 years as a public company and it looks forward to continuing to receive ongoing investor input, including from Corvex.

In addition, it said the board is committed to creating shareholder value and believes it is well positioned to do so with its investments in next-generation services and infrastructure, among other initiatives, including its share repurchase programs and other balance sheet activities. TW Telecom also pointed to its 34 consecutive quarters of sequential revenue growth.

Meister, a protege of activist investor Carl Icahn, said Wednesday that he believes TW Telecom is a likely takeover candidate thanks to its strength in providing data, which the hedge-fund manager said was becoming more important in the telecom world as customers use mobile devices for more and more functions.

Meister, speaking at the Ira Sohn Investment Conference in New York, said the company should work on using the debt markets to strengthen its balance sheet and buy back shares. He particularly credited TW Telecom for having a low amount of customer turnover, or churn, which he called the best in the business.

Shares were off 11 cents at $28.66 in recent trading and have risen 13% so far this year.